During the session, the Nasdaq index, comprising mainly of technology-related stocks, ended at 2,269, its lowest
close since March 1999.

It is a pattern that has seemingly repeated itself for months: Just as it
appears the US stock markets are in a position to right themselves,
corporate earnings woes or worrisome economic data send markets plunging.

It has left many bewildered market enthusiasts scratching their heads.

New data, new worries

Enterprising investors who took advantage of seemingly bargain-basement
prices have found that their investments move only sideways or - worse -
head lower.

"The market isn't happy," said Barry Hyman, chief equity strategist for
Weatherly Securities in New York.

He said Wednesday's report combined with last week's equally alarming
producer-price report have produced a "deadly mix for the market".

The latest rise in the Consumer Price Index (CPI) surprised analysts who
only expected prices to rise by 0.3% - half the amount reported by the government.

Prices were pushed higher largely by a temporary rise in energy price, led
by a 17% increase in natural-gas prices.

The so-called "core" rate, which excludes volatile energy and food prices,
also rose a greater-than-expected 0.3%. Core prices were pushed higher by an
increase in tobacco prices, while prices for houses and automobiles also
rose.

Interest-rate cut?

With the renewed inflation concerns comes speculation among Wall Street
insiders whether the Federal Reserve, the US central bank, will cut interest
rates at its next meeting in March.

Last year, the Fed remained hawkish on inflation, keeping rates high and
money tight in the hope of keeping rising prices at bay.

Then in January, in a stunning reversal, it lowered interest rates by half a
percentage and focused its concerns on an economy tilting toward recession.

The Federal Reserve followed up its early January rate cut with another one at the
end of January, following comments by Chairman Alan
Greenspan, who spoke gloomily about prospects for the US economy before the
US Senate.

"We are at near zero [growth]", Mr Greenspan said at the time.

Analysts are now pointing their finger at the Fed for not properly
navigating the economy through its explosive growth and then sudden
downturn.

"The Fed has made massive errors," said Lawrence Kudlow, chief economist at
ING Barings. "In 1999, they were too loose, and in 2000, they were too
tight."